Question
According to VRIO, if a resource or capability does not add value , should you continue with analysing its rarity, inimitability and organisational support
Answer
4
(179 Votes)
Saffron
Professional · Tutor for 6 years
Answer
No, if a resource or capability does not add value, there is no need to continue with analyzing its rarity, inimitability and organizational support.
Explanation
## Step 1: Understanding the VRIO FrameworkThe VRIO framework is a tool for analyzing a company's resources and capabilities. VRIO stands for Value, Rarity, Imitability, and Organization. These are the four parameters used to evaluate the competitive potential of a company's resource or capability.## Step 2: Applying the VRIO FrameworkThe first step in the VRIO analysis is to assess whether a resource or capability adds value. If it does not add value, it cannot be a source of competitive advantage. ## Step 3: Evaluating the Need for Further AnalysisIf a resource or capability does not add value, there is no need to analyze its rarity, inimitability, and organizational support. These factors only matter if the resource or capability is valuable.